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Melbourne Airport in July recorded its busiest month for domestic travellers since before the pandemic.Credit:Paul Rovere

“We believe there is a significant potential for improved access to Australia and Melbourne in particular through Asia-Pacific and the Middle East,” Argus said.

More than 2.9 million people passed through the airport over July,but just 900,000 travellers came from overseas. It was the first time since before the COVID-19 pandemic that more than 2 million domestic travellers were processed through Melbourne’s terminals in one month.

Argus is one of many voices in the aviation industry saying the government should modernise bilateral air service agreements through an open-skies approach.

“The current framework adopts a ‘just-in-time’ approach to capacity decisions,but given the long lead times required to establish new services,having negotiations undertaken well in advance would provide airlines with certainty and help improve viability,” she said.

Lorie Argus,CEO of Melbourne Airport,says international airlines need certainty.Credit:Eamon Gallagher

Minister for Transport and Infrastructure Catherine King has faced backlash this month over a controversial decision to reject Qatar Airways’ application to double its number of weekly flights to Australia. Qatar’s application was supported by the bulk of the industry and – according to industry sources who spoke on the condition of anonymity – the Department of Foreign Affairs and Trade,Austrade,various airport owners and all state governments.

King has not said why Qatar was rejected but has said the additional flights were not in the “national interest” and would have resulted in fewer jobs for Australians. This justification has been questioned by most of the tourism and aviation sector,which has accused the government of a lack of transparency.

Allowing Qatar to make 21 flights each week would have lowered the cost of international airfares,and economists including Tony Webber estimate it would have generated an additional $500 million in tourism revenue and thousands of jobs.

The application had two major detractors:the Qantas Group;and five women who areseeking damages from Qatar Airways and the Qatar Civil Aviation Authority – both owned by the Qatari government – over being subjected toinvasive searches at Hamad International Airport by Qatari federal police before their flight with the airline in 2020.

Open-skies agreements are used all over the world and are government-to-government deals designed to address protectionism in the airline industry through providing unlimited access. Under an open-sky agreement,a particular country’s airline can gain access to another’s airspace with limited interference by the host government.

As it stands,Australia requires countries to sign deals to let their airlines fly up to a maximum number of services per week. In the past,Australia has signed open-skies agreements with New Zealand,China,Japan,Singapore,the US,Britain and India.

Since flying resumed after the COVID-19 shutdown,many in the tourism industry have called on the government to sign new agreements,including the Council of Australian Tour Operators and the Australian Federation of Travel Agents.

“This would improve outcomes for passengers by encouraging international airlines to actively compete in our market to provide the best price,enhanced service and improved reliability for customers,” Argus said.

Singapore Airlines is preparing to add 4700 seats a week across its routes by next year,effectively restoring its full pre-pandemic capacity. The application – which is subject to regulatory approvals – includes resuming a fifth daily service to Melbourne,additional routes for Darwin and Perth,and flying bigger aircraft to other Australian destinations including Cairns.

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